Australia press on Stevens today: Lower rates can’t drive confidence: RBA’s Glenn Stevens

From the Australian Financial Review: Lower rates can’t drive confidence: RBA’s Glenn Stevens (gated)

A gated article from the Australian Financial Review, but in brief:

• Stevens said the single most important driver of the economy, a recovery in confidence, is not something that can be provided by lower official interest rates
• some “encouraging signs” on sentiment … (but) many businesses are preferring to return dividends and capital to shareholders over investing in fresh growth… “Any plans for growth that might be in the top drawer [of companies] remain hostage to uncertainty about the future pace of demand”
• Reiterated the bank’s long-standing view that the cash rate is likely to remain low
• Expressed confidence that at some point people would become convinced of a recovery

–

Earlier posts:

• Reserve Bank of Australia (RBA) Stevens testimony: Says RBA is allowing time for measures to take effect
• RBA Stevens Q&A: Says risk of AUD fall is underappreciated . His Q&A session is still ongoing